April 17, 2024

Portugal’s Parliament Votes Against Crypto Tax Proposals 

Portugal’s Parliament has turned down two separate propositions from minority parties regarding taxing crypto traders. During Wednesday’s 2022 budget debate, Bloco de Esquerda and Livre parties suggested some measures to tax virtual currency users. However, the lawmakers didn’t vote on favor of the proposal. 

Despite the rejection, no other party made further propositions on taxation. Even the ruling Socialist Party, which controls more than 50% of the assembly, didn’t. Based on findings, there’s a massive possibility that crypto taxation will be implemented in the next budget. 

Finance Minister Okays Cryptocurrency Taxation 

Earlier this May, Portugal’s Finance Minister Fernando Medina gave the assurance that the government would place taxes on cryptocurrency traders and investors. He said the government and regulatory agencies would create a framework as others are building similar models regarding the subject. 

Medina also said there shouldn’t be any loophole in the law that would see some earnings not taxed. Although he gave the assurance for developing a framework, he didn’t state the time frame. 

Mariana Mortagua, a lawmaker from one of the left parties, lambasted the government for its failure to develop a model to tax virtual currencies before the vote. Mortagua has been outspoken about taxing cryptocurrency and recently said her duty is to ensure crypto-assets are taxed on capital gains. 

State of Global Cryptocurrency Taxation 

Cryptocurrency taxation has been one of the trending topics in the sector for the past two years. So far, Singapore, South Korea, the United States, India, and the UK are the only ones with effective tax laws. 

India recently announced its tax bill during the presentation of the 2022 budget. The law termed “controversial and brutal” by many experts calls for a 30% tax on traders and retail investors. It also adds a 1% TDS on all transfers and payments. 

Portugal doesn’t want to be left out. It aims to emulate the aforementioned countries’ taxation laws on virtual currencies. But, the law may take a while before being passed. 

Other countries like Russia and Paraguay are also looking to regulate their crypto industry. Recently, Russia revealed it would legalize virtual currencies amid global sanctions. Unfortunately, adopting strong regulatory laws is still a hurdle the government has yet to cross. 

Meanwhile, Paraguay has passed a framework for cryptocurrency. The second chamber of the South American nation approved a legal structure to regulate trading and mining. The bill will await approval from the Senate before it’s signed into law by the executive arm. 

Leave a Reply

Your email address will not be published. Required fields are marked *